The MSCI Emerging Markets Index (MXEF) dropped 0.8 percent to
1,001.10 in New York. Copper plunged the most in 16 months as
the International Monetary Fund cut its forecast for China’s
gross domestic product growth yesterday, while crude oil tumbled
to a four-month low. The rand weakened 0.7 percent versus the
dollar and South African bonds gained, as March inflation was
slower than predicted by economists.

“Commodities have been in a downtrend for a while, and
that accelerated with the GDP out of China,” Walter Todd, who
oversees about $940 million as chief investment officer of
Greenwood Capital Associates LLC in Greenwood, South Carolina,
said in a telephone interview. The IMF cutting forecasts
“certainly doesn’t help.”

Gauges of energy and material stocks in the MSCI Emerging
Markets Index fell the most among 10 industry groups. The
emerging-markets index slipped 5.1 percent this year, trailing a
6.1 percent increase in the MSCI World Index of developed-
country stocks. The emerging-markets measure trades at 10.4
times 12-month projected profit, compared with the MSCI World’s
13.7, data compiled by Bloomberg show.

India’s (SENSEX) benchmark stock index fell for the first time this
week amid concern company earnings will trail analysts’
estimates. Reliance Industries Ltd. (RIL), the second-biggest stock on
the 30-stock gauge by weighting, retreated the most in six
months after quarterly sales lagged behind forecasts.

The won fell from a two-week high as a worsening outlook
for the currency spurred sales of South Korea’s shares by global
funds. Government bonds also declined.

The extra yield investors demand to own emerging-market
debt over U.S. Treasuries was unchanged at 295 basis points,
according to JPMorgan Chase & Co.’s EMBI Global Index.